KCI Konecranes and R.STAHL AG have signed a definitive agreement concerning the sale of STAHL’s Material Handling division, R.Stahl Fördertechnik, to KCI Konecranes. The purchase price on a cash and debt free basis is EUR 30.5 M. In addition, KCI Konecranes will assume approximately EUR 30 M in pension liabilities. Depending on the level of net working capital at closing, the seller is also entitled to an additional consideration estimated at EUR 5 M. Subject to approval from relevant competition authorities, final closing of the transaction is expected on December 30, 2005. The German competition authorities have already cleared the transaction.
"We are convinced that R.Stahl Fördertechnik and its people are a great asset for KCI Konecranes and our customers," said Pekka Lundmark, President and CEO, KCI Konecranes. " The transaction brings together some of the crane industry's strongest brands and most innovative technologies. The move also accelerates KCI Konecranes’ strategic initiative to advance its positions on the German market. "
STAHL’s Material Handling division generated sales of EUR 113 M and an EBITDA-margin of 5 % in 2004. The full year 2005 profitability of the division is expected to improve from the 2004 level. The acquisition is expected to be EPS neutral before synergies in 2006 and contribute positively to earnings per share from 2007.
The operations of R.Stahl Fördertechnik will continue under the STAHL brand and will be part of the Group’s Standard Lifting Equipment business area.
Background
On 26 October 2005, KCI Konecranes Plc announced its intention to acquire R.Stahl Fördertechnik GmbH. R.Stahl Fördertechnik is a significant global player in the field of specialised lifting applications, such as explosion proof material handling. The company employs approximately 750 people and has manufacturing sites in Künzelsau and Ettlingen, Germany. The company has 13 subsidiaries outside Germany and a wide network of sales representatives all over the world.
Main attractions to KCI Konecranes include complementary products, a large global installed base of STAHL cranes and a strong offering for the automotive and petrochemical industries. Specialised products such as explosion proof systems are steadily growing in importance, and have so far formed only a limited part of KCI Konecranes' product portfolio. The acquisition also advances the group’s position in new markets such as India, Spain and Portugal through Stahl’s local presence.
Further information can be obtained from
KCI Konecranes Plc
Pekka Lundmark, President & CEO, phone: +358-20 427 2000
Teuvo Rintamäki, Chief Financial Officer, phone: +358-20 427 2040
About R.STAHL AG
Founded in 1876 by Rafael Stahl, R. STAHL is a technology group providing products for demanding special performance areas. The main emphasis is on the Explosion Protection and Material Handling divisions providing over 90% of the group's turnover. R. STAHL is headquartered in Waldenburg, Germany, and listed on the Frankfurt and Stuttgart stock exchanges. For further information please visit their corporate website at .
About KCI Konecranes
KCI Konecranes is a world leading crane technology and service company. Maintenance services are provided for cranes of every make. The product range includes light crane systems, heavy-duty cranes for process industries and shipyards, special harbour cranes for bulk materials and containers as well as reach stackers and lift trucks. In 2004, Group sales totalled EUR 728 million. The Group has 5,000 employees in 35 countries. KCI Konecranes is listed on the Helsinki Stock Exchange (symbol: KCI1V).
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